The invention relates to an interference cancellation method and a receiver including interference canceller for suppressing a narrow-band interference signal from a received signal, converter for performing an orthonormal conversion of the signal into subspace components of a desired subspace, a decoder connected operationally to the output of the interference canceller, in which decoder an estimate for the received signal is obtained. The output of the decoder is operationally connected to the interference canceller, and the converter is arranged to determine an estimate for narrow-band interference properties, in which determination the estimate obtained from the output of the decoder is subtracted from the received signal before the orthonormal conversion is performed. By using the determined estimate, the interference canceller is arranged to reduce effect of the subspace components including narrow-band interference signals from the received signal.